Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2022', ZM's return on equity was 23.8%, measuring profitability for shareholders. Industry average for Computer Software: Programming Data Processing in '2022' stood at -11.5%.
• In '2023', ZM's return on equity was 1.7%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2023' stood at -8.8%. Industry average increased by 2.8% compared to previous year.
• In '2024', ZM's return on equity was 9.0%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2024' stood at -1.0%. Industry average increased by 7.8% compared to previous year.
• In '2025', ZM's return on equity was 11.9%, measuring profitability for shareholders. The increase since '2024' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2025' stood at 11.9%. Industry average increased by 12.9% compared to previous year.
Overall, ZM's return on equity has been volatile but showed a downward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.